Royal Mail has got disappointing investors down to a fine art, as the consequences of historic under-investment haunt the former state-controlled group.
What has sent investors into a tailspin this time? Adjusted operating profits in the UK came in weaker than expectations, at £416 million for the 12 months to March, compared with the £430 million that the FTSE 100 constituent told the market to expect in January. Management expects those profits to fall again this year to £303 million, guidance that itself comes with caveats.
The shares have fallen 43 per cent since this time last year and are 11 per cent down on the price that they listed on the stock market in 2013. That leaves the shares priced at just seven times
